Question 3 5 pts An analyst gave us the the following information: The Real Rate of Interest: r* = 1% Inflation Premium (IP) is expected to be: Year one = 3%, Year two = 5%, Year three = 5% and Year four = 7% Maturity Risk Premium (MRP) = 0.1 X (t-1)% Liquidity Premium (LP) for a long-term security=0.25% Default Risk Premium (DRP) for a long term security= 1% Question: What is the Yield on a 1-year T-Bill? ey tor O 3% 3.5% O 4% 4.5% 59 D Question 4 5 pts Same information as it is in question 3: An analyst gave us the the following information: The Real Rate of Interest: r - 1% Inflation Premium (IP) is expected to be: Year one = 3%, Year two - 5%, Year three = 5% and Year four = 7% Maturity Risk Premium (MRP) - 0.1 X (t-1)% Liquidity Premium (LP) for a long term security-0.25% Default Risk Premium (DRP) for a long term security- 1% What is the Yield on a 2-year T-Bond? tor 0 3.75% 4.25% 5.10% O 5.25% 6.30% Question 5 5 pts Same information as it is in question 3: An analyst gave us the the following information: The Real Rate of Interest: r* = 1% Inflation Premium (IP) is expected to be: Year one = 3%, Year two = 5%, Year three = 5% and Year four = 7% Maturity Risk Premium (MRP) = 0.1 X (t-1)% Liquidity Premium (LP) for a long term security= 0.25% Default Risk Premium (DRP) for a long term security= 1% What is the Yield on a 4-year Corporate Bond? O 4.25% 5.1% 6.21% O 7.55% O 8%